People have a tendency to misuse the word “investment.” They convince themselves that having the latest iPhone or Android device is a necessary and worthwhile expense, failing to realize that these gadgets depreciate as soon as the next model comes out.
Splurging every now and then is perfectly okay, but not managing your spending habits wisely or always buying the wrong “investments” can impact your long-term financial stability. A purchase that leads you to lose money in the long haul is a liability—not an investment. If you wish to take strides towards financial security, then you need to spend your hard-earned money on high-value assets that increase in value over time.
Best Luxury Items to Buy for Financial Wellness
To help you retire early with an enviable savings account, let us discuss the top five luxury items you should buy, all of which actually pay off in the long run.
- Designer Bags
Posh Spice Victoria Beckham and Singaporean socialite Jamie Chua own hundreds of Hermès Birkin bags for a reason. There is no denying that these designer handbags are essential pieces in fashion. Pairing perfectly with any ensemble, a Birkin bag makes you look more sophisticated while satisfying your practical needs. Of course, aside from making you look fashionable, these expensive handbags are also lifetime pieces that continuously increase in value.
Aside from Hermès, high-end bags from leading designer brands are direct indications of status, as most of their pieces retail for thousands of dollars. Here is a list of the top 10 luxury handbag brands you should invest in and the 7 best investment bags for growing your wealth.
If you already own leather goods from a distinguished brand, ensure to take care of them so you can sell your pieces for a good amount in the future. Here at Biltmore Loan, you have the option to sell or pawn your designer bag for some quick cash.
Vincent van Gogh, one of the greatest painters in history, may have only sold one painting in his lifetime, but his pieces currently cost around $148 to $152 million. Paintings and sculptures do more than enhance the aesthetic of your home—they are lucrative investments as well. In 2019 alone, the global sales of fine art and antiques reached a total of $64.1 billion.
Since the value of fine art is always on the rise, why not consider adding a piece to your home? Although not every illustration or sculpture you purchase will cost as much as the masterpieces of da Vinci or Picasso, you can still sell them for a decent amount after some years, especially if the artist responsible becomes the next big name in the art industry. Do not be afraid to invest in art pieces that speak to you.
- Diamond Jewelry
“Diamonds are forever,” as the famous saying of Frances Gerety goes. In jewelry, this line speaks nothing but the truth. Behind luxurious items such as diamond necklaces and engagement rings are powerful emotions, therefore, each piece’s value to the wearer is priceless. However, from a practical perspective, diamond-encrusted jewelry is a remunerative investment.
Aside from elevating your look from plain to elegant and lavish, real diamond jewelry doubles in value over time due to inflation and evolving market trends, even if its price fluctuates based on supply and demand. Indeed, diamonds are forever.
Selecting jewelry can be quite challenging since you need to consider different factors, including your personal style, skin undertone, and favorite colors. Luckily, we have a comprehensive guide on how to choose the right jewelry for you and a list of the best diamond cuts to buy.
High-end watches and timekeeping devices are similar to designer bags and diamond jewelry: A classy accessory that can make or break your outfit of the day, and often possesses immense sentimental value. If, however, you see your watch collection as an investment, any one from top brands like Audemars Piguet or Patek Philippe can have great value down the line.
Although most high-end timepieces command thousands of dollars per piece, their high resale value can help you earn a large amount of money if you decide to sell or pawn your luxury watch in Phoenix, Arizona. Just remember to save the original packaging, additional accessories, and any paperwork to maximize the resale value of your item.
- Fine Wine
Investing in wine is more lucrative than ever. The price points of many alcoholic drinks increase over time, but the value of wine is substantially higher than most beverage options. To give you an estimate of how much you can earn, fine wine’s overall industry growth rate will be between 4 to 8 percent in 2020 and beyond.
Investing in fine wine does not mean you need to buy a vineyard—it is all about purchasing the perfect bottle. There are hundreds, if not thousands, of choices available, so you need to do your research and put some effort into finding the right leads. If you come across the right wines and invest in them, you can make returns as high as 8 to12 percent. To narrow your search: learn about the 10 most expensive bottles of wine in the world.
The Bottom Line: Invest in the Right Items
Building wealth or achieving long-term financial freedom does not happen overnight. Aside from acquiring multiple sources of income and developing the billionaire mindsets that Bill Gates and Jeff Bezos have, being financially stable necessitates making the right investments. As long as you remain patient, investing in the items mentioned in this article will help you accomplish your long-term financial goals.
For more financial advice, please read Living Debt-Free: 5 Steps To Financial Independence and 7 Reasons You Haven’t Reached Financial Freedom.
Lastly, in case you need money fast in Phoenix, Biltmore Loan and Jewelry offers the ultimate upscale collateral lending and outright selling experience in Scottsdale and Chandler, AZ. Simply bring your high-value assets to one of our locations or complete this online form to get a market appraisal from our specialists. Our team looks forward to doing business with you.